Peaches n cream might end up heavy (isn't one of those big skeins almost a pound?), but it could work. it might be a little stretchy if you use a lacy or open pattern (it might stretch out of shape more than you want). What about something lighter like cotton ease (lion) (which is cotton and acrylic) or a cotton/bamboo or a cotton/silk blend?

and 100% bamboo is very breathable and light- I used Royal Bamboo to make a camisole and it is sooooo soft and nice... I'm using some bamboo from discontinuednamebrandyarn (SWTC?) to make a sort of shell and it is extremely light weight, and it wasn't very expensive, as I remember. (I only need 3-4 balls out of the 10 ball bag)

My mom has given me some egyptian cotton (thanks mom!) to make another Monica tank for my daughter and it is very soft and has a nice sheen. (but I haven't cast on yet- soon!)

Thanks for the advice, I've never knitted anything in cotton, I just want to make it with some yarn that's easy to find and I don't have to go online to get it. When I want to start a project, I want it NOW!!!!!

So an Acryllic would be cool in the summer?

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I think it depends on the acrylic... 100% acrylic- maybe not. but a blend would be ok. 100% acrylic isn't very breathable. That's why I thought maybe the Lion Brand Cotton Ease- I found it at my local Michaels (instant gratification here too!) and it was $4.99/ skein. (more than peaches n cream, but not astronomical.) I've also seen it at JoAnns. (we don't have hobby lobby so I don't know about them)

The original Monica tank I made for Kayleigh was out of Plymouth Jeannee which is a cotton acrylic blend too- and it is light and not too hot for her. and it drapes really nicely. I think it was around $2/ball from my LYS. (50g/ball)

you might want to really look at your dishcloths made from peaches and cream to see if you'd want to wear it. I'm not saying it CAN'T work, but you might not get the results you are picturing.